Standard Chartered has reversed its plan to sell only its wealth and retail banking operations in Botswana, opting instead to divest the entire business, including the profitable corporate and investment banking unit.
The decision follows interest from potential buyers who preferred the full franchise over partial assets. The process is expected to take up to 15 months, with South African banks Absa and FirstRand emerging as key contenders. Both have recently acquired Standard Chartered’s operations in Uganda and Zambia, respectively, as part of their expansion across the continent.
READ – Standard Chartered sells its Zimbabwe business as part of its plan to exit markets in Africa
Standard Chartered Botswana’s CEO emphasised the franchise’s strength and attractiveness, noting that it is well-positioned to succeed under new local-scale ownership. The bank remains committed to a smooth transition for clients, employees, and shareholders. As reported by Business Day, this shift aligns with the group’s broader strategy to streamline its footprint in Africa.
South African lenders already hold significant presence in Botswana, where the sector is dominated by four major commercial banks controlling about 80 per cent of assets and deposits. Absa, FirstRand, Standard Bank, and Nedbank operate there, and acquiring Standard Chartered’s full operations would enhance their market share and earnings diversification beyond South Africa.
Standard Chartered has progressively scaled back in Africa since 2022, exiting or reducing activities in countries including Zimbabwe, Angola, Cameroon, Gambia, and Sierra Leone. This retreat forms part of a wider trend among European banks facing competition from entrenched local and pan-African players.
HSBC exited South Africa in 2024 by transferring assets to FirstRand and Absa, while BNP Paribas wound down its corporate and investment banking in the country two years earlier. Fitch Ratings has noted that French and other multinational banks are likely to accelerate divestments from Africa, citing tougher operating environments, higher costs, and dominance by regional groups like Standard Bank in corporate banking.
The move reflects strategic refocusing for European institutions amid global pressures, while creating opportunities for South African banks to strengthen their regional networks. Standard Chartered maintains that Africa remains core to its operations, with growth in wealth assets under management in sub-Saharan Africa more than doubling in recent years.